inflated sale prices to gain board approval

Almost as good as borkers buying and selling from each other and then opening the doors to the 'general' public. Flmao. What should we call it when a car salesman sell cars amongst themselves and then tell a 'real' customers there are ppl wiling to pay list!

Or a stock brokers selling and buying stocks for months then selling when mr. Valentine/jimnutz sets the 'mkt'?

'brokerunning'? 'boardhumping'? 'ohnoboardcantdealwithrealitymfkers'? 'allzlegalwhenitcomesto a 'home''? Brokersbankersappraisalersboardcirclejerk?'

I would think there would be serious issues with this when it was time to report capital gains on the property after a future sale -- the basis would be artificially inflated in the public records, and if the owner didn't correctly report the real (lower) basis in her taxes, she could get in some trouble with the IRS. Are there no limits on the extent to which a buyer and seller can manipulate the public record?

Except in the stock market this is called "price manipulation" and will land you in jail. Can you imagine some securities lawyer coming out and saying anything like this:

“If handled correctly," says real estate lawyer Jeffrey Reich, "credits and allowances provide a win-win alternative for the seller, purchaser, board and shareholders, whose apartment values are protected.”

Yes, we all better invest in real estate where it is safe rather than that shady world of stocks where people could be doing anything.

This is yet another example of fraud.

It is clear the intent is to inflate the sales price with the SPECIFIC intention of misleading and deceiving future buyers. If future buyers ask about such adjustments and are lied to by the seller/building, wouldn't this be considered some sort of fraudulent conveyance of some sort? Heck, simply not openly disclosing such a transaction would suggest fraud - the IRS certainly would this it is.

Meanwhile, I suppose coop boards - who are supposed to be worried about their members "character" - sit back and let this garbage fly because it benefits their apt values...

Our whole country seems to have adopted a fraud-to-riches scheme simply because there are few to no consequences to their actions.

This is highly disturbing and someething I will keep in mind when looking to make a RE purchase.

"Never been there so can't say, but it is darned creative."

Uh, creative? This is boiler room tactics 101 crap. Stock is trading at $10, I buy it from you at $12 with you paying me $1 on the side. Our transaction moves market to $12, where I sell. I get $1, you get $1, shareholders see increase in the value of their holdings, "everyone" is happy: a "win-win". I wonder how that defense would work out on the way to prison.

What's next, lawyers and RE professionals touting the virtues of pump-and-dump schemes, being extolled as creative for their vision?

"“If handled correctly," says real estate lawyer Jeffrey Reich, "credits and allowances provide a win-win alternative for the seller, purchaser, board and shareholders, whose apartment values are protected.”"

Win-win?

Barf.